Understanding Cyclical and Non-Cyclical Stocks for Better Portfolio Diversification
Understanding Cyclical and Non-Cyclical Stocks for Better Portfolio Diversification
Cyclical stocks fluctuate with economic trends, while non-cyclical stocks remain stable. Understanding these categories helps investors diversify portfolios and navigate market conditions effectively.
In order to achieve their goals, investors need to have a balanced portfolio. This entails giving careful consideration to the selection of stocks. There are many ways to understand which stocks to purchase; one such way is by looking at the fundamental nature of the business to further classify them into cyclical and non-cyclical stocks. In this article, we will understand what exactly cyclical and non-cyclical stocks are so that you can make informed decisions to efficiently diversify your portfolio.
Benefits of Pre-Applying for an IPO
Pre-applying for an IPO helps investors secure shares early, avoid last-minute rush, and increase allotment chances while benefiting from potential first-day gains and long-term growth opportunities.
Why an Interest Coverage Ratio of 3 is preferable over 2 for equity investors?
Why an Interest Coverage Ratio of 3 is preferable over 2 for equity investors?
Equity investors generally prefer a higher interest coverage ratio, as it indicates a company's ability to comfortably meet its interest payment obligations. A ratio of 3 is often seen as more favorable than a ratio of 2.
SBI or HDFC Bank: Learn Stock Picking with Sector-Specific Valuation Metrics
SBI or HDFC Bank: Learn Stock Picking with Sector-Specific Valuation Metrics
Unlock Investment Opportunities: Learn How P/E, P/B, EV/EBITDA, and PEG Ratios Can Help You Compare and Choose the Right Stocks
Unlock Investment Opportunities: Learn How P/E, P/B, EV/EBITDA, and PEG Ratios Can Help You Compare and Choose the Right Stocks
Can You Time the Market Bubble? Oaktree Capital's Co-Founder Reveals the Truth
Understanding Market Bubbles: How to Spot Over-Optimism and Make Smarter Investment Choices
Understanding Market Bubbles: How to Spot Over-Optimism and Make Smarter Investment Choices
Understanding the Historical Income Statement
An income statement, also known as a profit and loss statement, is a financial document that provides a summary of a company's revenues, expenses and profits over a specific period.
A historical income statement is an indispensable tool in financial analysis, offering insights into a company’s past performance.
Understanding EBITDA and EBIT: Key Financial Metrics Explained
When you're looking at a company's financial health, two important terms you might come across are EBITDA and EBIT.
These terms help investors, analysts, and company leaders understand a business's profitability and overall financial performance.
Explained Concept of Company Trading on Equity
Learn about the concept of "Trading on Equity," as companies balance increased shareholder returns with potential financial risks through adept use of debt.
Dividends vs. Capital Gains: Understanding the Differences in Stock Market Returns
Dividends vs. Capital Gains: Understanding the Differences in Stock Market Returns
When investing in the stock market, there are two primary ways investors can earn a return on their investments: dividends and capital gains.
Both offer distinct advantages and can be an important part of an investor’s strategy, depending on their financial goals.
Understanding Fundamental Analysis and Technical Analysis & Key Differences
Fundamental analysis tells you if a company is strong, while technical analysis helps you decide the right time to buy based on price movements.
Many successful investors combine both approaches, allowing them to make well-informed decisions that consider both the financial health of a company and the behaviour of its stock price.
What Every Investor Should Know About Fixed, Variable and Marginal Costs!
Understanding how these costs work together is important for both business owners and investors.
Understanding the Interaction Between Total, Variable, Fixed, and Marginal Cost and Output
GAAP vs IFRS: What's the Difference?
You may have heard of two major sets of rules that help guide how companies report their financial activities: GAAP and IFRS.
Key Differences Between GAAP and IFRS